us-irs-revenue-rulings-rr-09-02•rr-09-02.pdf
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Part I Section 401. -- Qualified Pension, Profit-Sharing, and Stock Bonus Plans 26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions or benefits Rev. Rul. 2009-02 This revenue ruling provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code (the “Code”) and the Income Tax Regulations, thereunder, for the 2009 plan year. Section 401(l)(5)(E)(i) defines covered compensation with respect to an employee, as the average of the contribution and benefit bases in effect under section 230 of the Social Security Act (the “Act”) for each year in the 35-year period ending with the year in which the employee attains social security retirement age. Section 401(l)(5)(E)(ii) of the Code states that the determination for any year preceding the year in which the employee attains social security retirement age shall be made by assuming that there is no increase in covered compensation after the determination year and before the employee attains social security retirement age. Section 1.401(l)-1(c)(34) defines the taxable wage base as the contribution and benefit base under section 230 of the Act. Section 1.401(l)-1(c)(7)(i) defines covered compensation for an employee as the average (without indexing) of the taxable wage bases in effect for each calendar year during the 35-year period ending with the last day of the calendar year in which the employee attains (or will attain) social security retirement age. A 35year period is used for all individuals regardless of the year of birth of the individual. In determining an employee's covered compensation for a plan year, the taxable wage base for all calendar years beginning after the first day of the plan year is assumed to be the same as the taxable wage base in effect as of the beginning of the plan year. An employee's covered compensation for a plan year beginning after the 35-year period applicable under §1.401(l)-1(c)(7)(i) is the employee's covered compensation for a plan year during which the 35-year period ends. An employee's covered compensation for a plan year beginning before the 35-year period applicable under §1.401(l)-1(c)(7)(i) is the taxable wage base in effect as of the beginning of the plan year. Section 1.401(l)-1(c)(7)(ii) provides that, for purposes of determining the amount of an employee's covered compensation under §1.401(l)-1(c)(7)(i), a plan may use tables, provided by the Commissioner, that are developed by rounding the actual amounts of covered compensation for different years of birth. For purposes of determining covered compensation for the 2009 year the taxable wage base is $106,800. The following tables provide covered compensation for 2009: ATTACHMENT I 2009 COVERED COMPENSATION TABLE CALENDAR YEAR OF BIRTH CALENDAR YEAR OF SOCIAL SECURITY RETIREMENT AGE 2009 COVERED COMPENSATION TABLE II 1907 1972 $ 4,488 1908 1973 4,704 1909 1974 5,004 1910 1975 5,316 1911 1976 5,664 1912 1977 6,060 1913 1978 6,480 1914 1979 7,044 1915 1980 7,692 1916 1981 8,460 1917 1982 9,300 1918 1983 10,236 1919 1984 11,232 1920 1985 12,276 1921 1986 13,368 1922 1987 14,520 1923 1988 15,708 1924 1989 16,968 1925 1990 18,312 1926 1991 19,728 1927 1992 21,192 1928 1993 22,716 1929 1994 24,312 1930 1995 25,920 1931 1996 27,576 1932 1997 29,304 1933 1998 31,128 1934 1999 33,060 1935 2000 35,100 1936 2001 37,212 1937 2002 39,444 1938 2004 43,992 1939 2005 46,344 1940 2006 48,816 1941 2007 51,348 1942 2008 53,952 1943 2009 56,628 1944 2010 59,268 1945 2011 61,884 1946 2012 64,464 1947 2013 67,008 1948 2014 69,408 1949 2015 71,724 1950 2016 73,920 1951 2017 76,044 1952 2018 78,084 1953 2019 80,052 1954 2020 81,972 1955 2022 85,620 1956 2023 87,384 1957 2024 89,064 1958 2025 90,660 1959 2026 92,184 1960 2027 93,648 1961 2028 95,052 1962 2029 96,372 1963 2030 97,680 1964 2031 98,940 1965 2032 100,116 1966 2033 101,220 1967 2034 102,192 1968 2035 103,068 1969 2036 103,824 1970 2037 104,448 1971 2038 105,012 1972 2039 105,552 1973 2040 106,032 1974 2041 106,392 1975 2042 106,656 1976 and Later 2043 106,800 ATTACHMENT II 2009 ROUNDED COVERED COMPENSATION TABLE CALENDAR YEAR OF BIRTH 2009 COVERED COMPENSATION ROUNDED 1937 $ 39,000 1938 - 1939 45,000 1940 48,000 1941 51,000 1942 54,000 1943 57,000 1944 60,000 1945 - 1946 63,000 1947 66,000 1948 69,000 1949 72,000 1950 - 1951 75,000 1952 78,000 1953 - 1954 81,000 1955 - 1956 87,000 1957 - 1958 90,000 1959 - 1960 93,000 1961 - 1962 96,000 1963 - 1965 99,000 1966 - 1968 102,000 1969 - 1972 105,000 1973 and Later 106,800 DRAFTING INFORMATION The principal author of this revenue ruling is Michael Spaid of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding this revenue ruling, please contact the Employee Plans taxpayer assistance telephone service at 1-877-829-5500, between the hours of 8:30 a.m. and 4:30 p.m. Eastern time, Monday through Friday (a toll-free number). Mr. Spaid may be reached via e-mail at RetirementPlanQuestions@irs.gov.
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